How Jeffrey Epstein built a fortune through deception and influence

Jeffrey Epstein, who died in 2019, built his financial empire not through conventional investing but through a pattern of manipulation, deception, and the exploitation of powerful individuals, according to historical records and accounts of his career.

Epstein, a college dropout, began his financial career at Bear Stearns from 1976 to 1981. He secured the position after a parent at the Dalton School, where Epstein taught math, recommended him, says the NYTimes.

Despite having lied on his résumé about graduating from college, he was hired because senior executive Michael Tennenbaum considered him a "hell of a salesman."

During his tenure, Epstein reportedly gained "protected status" by dating the CEO's daughter and later became a protégé of senior executive Jimmy Cayne, who introduced him to high-value clients. By 1980, Epstein was a limited partner earning the equivalent of $800,000 in today's dollars. His time at Bear Stearns ended in 1981 after investigations into alleged abuse of expense accounts, illegal loans to friends, and giving a girlfriend preferential access to initial public offerings.

Building independent wealth

After leaving Bear Stearns, Epstein engaged in various schemes to build independent wealth. In 1982, he allegedly defrauded investor Michael Stroll of $450,000 over a fictitious crude oil deal, later sending Stroll a quart of oil to maintain the ruse. He also worked as a self-described "bounty hunter," recovering millions in missing securities for wealthy Spanish families from a Canadian bank in the Cayman Islands in 1984, earning what was likely his first million-dollar payday.

Ventures with Towers Financial

Epstein's financial activities expanded in the late 1980s through his work with Towers Financial, where he partnered with Steven Hoffenberg as a consultant earning $25,000 per month. Hoffenberg later claimed Epstein helped orchestrate a $500 million Ponzi scheme that defrauded thousands of investors. During this period, Epstein also engaged in market maneuvers involving the chemical company Pennwalt, recruiting wealthy investors to purchase shares to drive up the price and allegedly refusing to return their money once profits were booked. By the end of 1988, he reported a net worth of $15 million.

Advising billionaire Les Wexner

Epstein's most significant financial opportunity came when he became the financial advisor to billionaire Les Wexner in the late 1980s. Despite warnings from Wexner's other advisors that Epstein was a "rat," Wexner granted him power of attorney over his entire fortune, allowing Epstein to manage and allegedly misappropriate funds for personal expenditures, including properties in Palm Beach, Florida, and Manhattan. Wexner's association also gave Epstein credibility to attract other wealthy clients.

Leveraging social connections

Records indicate Epstein further leveraged social connections and charitable activity to expand his wealth. He reportedly used young women to gain access to elite social circles, including the Clinton White House and the Rockefeller family. Charitable donations through his foundation helped secure board positions at institutions like Rockefeller University, which he used to assert influence over other wealthy families.

Relocation to the US Virgin Islands

In 1999, Epstein relocated operations to the US Virgin Islands, securing substantial tax breaks for his company, Financial Trust. By representing himself to local officials as a "financial doctor" with a "sense of integrity," he reportedly reduced his tax obligations by tens of millions annually. Company records at the time of his death indicated a net worth exceeding $100 million.